Legal principle

An exporter who ships sugar under the restricted export policy with the specific permission of, and conditions prescribed by, the Directorate of Sugar cannot be denied the RoDTEP rebate, since the basic objective of the scheme is to grant rebate as an incentive to the exporter, and shipping bills may be amended under Section 149 read with Section 154 of the Customs Act, 1962 to claim that benefit.

Court decision

The Court disposed of the writ petition in favour of the petitioner, adopting the directions in Satyendra Packaging Ltd.: it directed the respondents to grant RoDTEP rebate to the petitioner, who had exported sugar with specific permission and under the specific conditions prescribed by the Directorate of Sugar per Notification No.19/2015-20 dated 17.08.2021, clause 3 of paragraph 2 of Notification No.76/2021-Customs (N.T.) dated 23.09.2021, and Notification No.10/2015-20 dated 24.05.2022. The impugned orders dated 04.04.2024 (respondent No.2) and 20.06.2024 (respondent No.5) were quashed and set aside; as regards the orders dated 16.04.2024 and 15.05.2024 of respondent Nos.3 and 4, liberty was reserved to the petitioner to file an appropriate writ petition before the jurisdictional High Court, and the amendment applications were directed to be considered by respondent Nos.6 and 7.

Facts

M/s Louis Dreyfus Company India Pvt. Ltd. exports sugar under Tariff Items 17011490 and 17019990 of the First Schedule to the Customs Tariff Act, 1975, and its exports were eligible for the RoDTEP scheme from 01.01.2022. By Notification No.10/2015-20 dated 24.05.2022, the export policy for sugar was made 'restricted' from 01.06.2022 and RoDTEP benefit was not made available for such goods, so the petitioner, under a bonafide belief of ineligibility, did not declare intent to claim RoDTEP in most shipping bills, though it claimed the benefit in a few bills where export was permitted with specific permission of the Department of Food and Public Distribution, and later suo moto surrendered the benefit availed. After this Court's decision in Satyendra Packaging Ltd. allowed traders to claim RoDTEP on white refined sugar exports, the petitioner applied at various ports for amendment of shipping bills under Section 149 read with Section 154 of the Customs Act, 1962. Those applications were rejected by the impugned orders on the ground that RoDTEP is excluded where the product is restricted for export under DGFT Notification No.19/2015-20 dated 17.08.2021 read with Notification No.10/2015-20 dated 24.05.2022.

Key provisions

• Section 149, Customs Act, 1962 — Amendment of documents
• Section 154, Customs Act, 1962 — Correction of clerical errors etc